In today’s briefing:
- Shengjing Bank (2066 HK): A Light Conditional VGO and Delisting Proposal
- [Quiddity Index] Sep25 HS Internet & IT Index Review; Capping Methodology Changes, Flows 20% Higher
- Alibaba (9988 HK): Top Trades Ahead of Earnings
- Montage Technology A/H Listing – Fast Growth but Doesn’t Need the Cash, Delisted Once
- PC Partner: 1H25 Results Show Progress, To Delist from HK by End of FY25
- Tencent/Netease: Netease and Bilibili Got One Each in August
- Shengjing Bank (2066 HK): Dire Status, Dire Offer Price
- Nongfu (9633 HK): 1H25, Recovering from Defamation, Record High Margin
- MIXUE IPO Lockup – US$480m Cornerstone Lockup Release
- CSPC Pharma (1093 HK): Finished Drugs Drag 1H25; 2H25 Expected To End with More Licensing Deals
Shengjing Bank (2066 HK): A Light Conditional VGO and Delisting Proposal
- Shengjing Bank Co Ltd H (2066 HK) disclosed a voluntary conditional offer and delisting proposal by Shenyang SASAC at HK$1.32 per H Share, a 15.8% premium to the undisturbed price.
- The key conditions are H Shareholder approval of the delisting and a minimum acceptance condition (50% of outstanding and 90% of H Shares). The offer has NOT been declared final.
- The offer is unattractive compared to precedent transactions, peer multiples and historical trading ranges. The satisfaction of the minimum acceptance condition is the key risk.
[Quiddity Index] Sep25 HS Internet & IT Index Review; Capping Methodology Changes, Flows 20% Higher
- On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Internet and IT Index for the September 2025 rebalance.
- There are 3 ADDs and 3 DELs. We predicted 2/3 ADDs and 3/3 DELs correctly. But Funding and FAF Re-weight/Capping flows are bigger than the ADD/DEL flows.
- Then on Monday 25 August, the index provider announced a capping methodology change. Not much changes, but flows increase from US$850mm to US$1bn+. Tables and spreadsheets amended.
Alibaba (9988 HK): Top Trades Ahead of Earnings
- Alibaba (9988 HK) will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time. In the lead-up, options strategies on the Hong Kong Exchange showcase a variety of approaches.
- Highlights: Recent option trades show a bias towards bullish sentiment. Two strategies using weekly options expiring soon after the earnings announcement are explored.
- Why Read: This review offers real-market insight into how sophisticated participants are positioning ahead of Tencent’s earnings.
Montage Technology A/H Listing – Fast Growth but Doesn’t Need the Cash, Delisted Once
- Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$1bn in its H-share listing.
- MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
PC Partner: 1H25 Results Show Progress, To Delist from HK by End of FY25
- PC Partner reported 1H25 results, which showed strong revenue growth and flat net margins.
- The company is confident it can delist from HK before the end of the year, as it only needs 50% of shareholders to approve the transaction. SGX only listing remaining.
- The company is now part of the Nvidia Partnership Network, which could accelerate growth in FY26.
Tencent/Netease: Netease and Bilibili Got One Each in August
- China announced game approval for the August batch. The number of games approved remained at a higher level than 2023.
- The number of game approval in August marked the record high level since the resumption post tightening.
- Of the companies that we are monitoring, Netease and Bilibili got approval for one game each.
Shengjing Bank (2066 HK): Dire Status, Dire Offer Price
- HK$1.32/Share, a 15.79% premium to undisturbed, and a massive 86.49% discount to NAV. For a rural commercial bank privatisation, there is nothing pretty in those numbers.
- Even the Offers for Bank Of Jinzhou (416 HK) and Jilin Jiutai Rural Comm Bank (6122 HK) were pitched (slightly) higher, from a P/NAV standpoint. And both were perennially suspended.
- This is privatisation via a voluntary offer, NOT a privatisation via a Merger by Absorption. As such there is scheme-like vote AND a 90% tendering condition.
Nongfu (9633 HK): 1H25, Recovering from Defamation, Record High Margin
- Nongfu Spring’s revenue increased by 16% YoY in 1H25, compared to a decrease of 7% YoY in 2H24.
- The operating margin reached its historical high, 37%, since the company’s IPO.
- Wahaha, the competitor that defamed Nongfu, is in a scandal itself.
MIXUE IPO Lockup – US$480m Cornerstone Lockup Release
- Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.
- MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
- In this note, we will talk about the lockup dynamics and possible placement.
CSPC Pharma (1093 HK): Finished Drugs Drag 1H25; 2H25 Expected To End with More Licensing Deals
- CSPC Pharmaceutical Group (1093 HK) 1H25 revenue dropped 18.5% YoY as finished drugs witnessed decrease on VBP and NRDL inclusion. Bulk products and license fees compensated to an extent.
- More license and collaboration in relation to the development, manufacturing and commercialization of certain products of the company awaited in 2H25 and augurs well in terms of future revenue visibility.
- CSPC Pharmaceutical aims to expand into the high-end market to achieve competitive differentiation and thereby command higher prices.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
